23+ eCommerce Fraud Statistics (2026)

E-commerce fraud is becoming an increasingly serious concern as online shopping continues to grow worldwide. Fraudsters are constantly finding new ways to exploit vulnerabilities in payment systems, digital wallets, and online accounts. In 2025, global e-commerce fraud losses are expected to reach $138.6 billion. Nearly 80% of all fraud cases involve identity theft, while chargeback fraud alone accounts for 29% of losses at the point of transaction, showcasing the serious money risks that online businesses face. In this article, we have listed down 23+ e-commerce fraud statistics for 2025, providing a detailed overview of the most common threats, regional trends, types of fraud, and more.

Top eCommerce Fraud Losses Statistics

Global eCommerce Fraud Losses to Surpass $200 Billion by 2028

Global eCommerce fraud losses shows an upward trend over the decade. Losses increased from $99.82 billion in 2021 to $114.8 billion in 2022, before dipping to $93.96 billion in 2023. However, this decline was short-lived, as fraud losses rebounded sharply to $115.3 billion in 2024 and are projected to rise to $138.6 billion in 2025. 

The growth is expected to accelerate further, reaching $163.3 billion in 2026 and $185.9 billion in 2027. By 2028, global eCommerce fraud losses are forecast to surpass $200 billion, hitting $201.6 billion, and climbing to $204.3 billion by 2029.

Year	eCommerce Fraud Losses
2021	$99.82 billion
2022	$114.8 billion
2023	$93.96 billion
2024	$115.3 billion
2025	$138.6 billion
2026	$163.3 billion
2027	$185.9 billion
2028	$201.6 billion
2029	$204.3 billion

30% of Organizations Lost $5 to $10 Million to Fraud in 2024

In 2024, the cost of fraud placed a significant financial burden on online merchants, with impacts varying widely across organizations. About 30% of organizations reported fraud losses between $5 million and $10 million, making this the most common cost range. Another 25% experienced losses under $5 million, while 18% incurred costs between $10 million and $15 million. 

Higher fraud exposure was also notable, as 11% of organizations reported losses in the $15 million to $20 million range. Although fewer merchants fell into the highest brackets, 4% faced fraud costs between $20 million and $30 million, and a substantial 12% reported losses exceeding $30 million.

Cost of Fraud	Percentage of Organizations
Under 5 million	25%
5 million to 10 million	30%
10 million to 15 million	18%
15 million to 20 million	11%
20 million to 30 million	4%
Over 30 million	12%

Global eCommerce Fraud Losses Growing at a 27.4% CAGR

Global losses from e-commerce fraud are increasing at a rapid pace, growing at a compound annual growth rate (CAGR) of 27.4%. This high growth rate shows that fraud-related losses are rising much faster than overall e-commerce sales, highlighting the increasing sophistication and frequency of fraudulent activities.

North America eCommerce Fraud Surged 207% Year Over Year

eCommerce fraud in North America saw a dramatic surge, increasing by 207% between Q1 2024 and Q1 2025. This sharp year-over-year growth indicates that fraud activity more than tripled within just one fiscal year, reflecting a rapid escalation in both the frequency and sophistication of online fraud.

Online Retailers Lose $4.61 for Every $1 Lost to Fraud

Online retailers face far greater losses than the value of the fraud itself, losing an estimated $4.61 for every $1 lost to fraud when indirect costs are included. These additional losses come from chargeback fees, operational expenses, customer service efforts, lost merchandise, and reputational damage. 

This multiplier effect shows that fraud has a much broader financial impact on eCommerce businesses, significantly increasing the true cost of fraudulent activity beyond direct transaction losses.

98% of Merchants Experienced Fraud in the Past Year

Fraud remains a widespread issue, with 98% of merchants having faced at least one type of fraud in the past year. This shows that almost all online businesses, regardless of size, are vulnerable, emphasizing the need for strong fraud prevention and risk management strategies.

Online Payment Fraud Losses Rise from $41B in 2022 to $107B by 2029

Global losses from online payment fraud are projected to rise sharply over the coming years, reflecting the growing risks in digital transactions. Losses increased from $41 billion in 2022 to $48 billion in 2023, before slightly declining to $44.3 billion in 2024. 

However, the trend rebounds strongly, with projected losses reaching $52.8 billion in 2025 and continuing upward to $63 billion in 2026 and $75.2 billion in 2027. By 2028, global losses are expected to hit $89.7 billion, surging to $107 billion by 2029. 

Year	Losses to Online Payment Fraud
2022	$41 billion
2023	$48 billion
2024	$44.3 billion
2025	$52.8 billion
2026	$63 billion
2027	$75.2 billion
2028	$89.7 billion
2029	$107 billion

54% of Financial Institutions Report Fraud Losses Over $500K in 2023

In 2023, a majority of financial institutions faced substantial fraud-related financial impacts, with 54% reporting direct fraud losses exceeding $500,000, according to a survey by Alloy. Moreover, 25% of institutions experienced even higher losses, surpassing $1 million.

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Chargeback Fraud Statistics

Chargeback Recovery Rate for Fraud Hits Only 17.1%

Merchants succeed in just 17.1% of chargeback disputes involving suspected fraud, showing how difficult it is for businesses to recover losses. This low win rate emphasizes the financial burden chargebacks place on merchants, who often bear most of the costs even after taking steps to prevent fraud.

Online Merchants Face $78 Average Cost per Fraud Chargeback

In 2024, online merchants spent an average of $78 for each fraudulent dispute to defend against chargebacks, underscoring the considerable costs involved in managing fraud and the additional financial strain it places on e-commerce businesses beyond the original transaction losses.

Global Chargeback Costs to Reach £41.7B by 2028

Global chargeback volumes are set to impose a growing financial burden on eCommerce, with costs projected at £33.79 billion in 2025 and expected to rise to £41.69 billion by 2028, marking a 23% increase in just three years. 

This rapid growth reflects the increasing prevalence of fraudulent transactions, friendly fraud, and disputes in online commerce. Beyond the direct financial losses, chargebacks also drive up operational costs, strain customer service resources, and can damage merchant reputations.

Nearly One-Third of eCommerce Fraud Losses Linked to Chargebacks

At the point of transaction, chargeback fraud accounts for 29% of e-commerce fraud losses, representing a significant portion of the financial impact on online retailers. This underscores the importance for merchants to strengthen transaction monitoring, verification processes, and fraud prevention strategies to minimize losses from these disputes.

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Fraud Types & Merchant Risks

47% of Merchants Report Refund and Policy Abuse as Top Fraud Type

Refund and policy abuse is the most common type of fraud affecting merchants worldwide, with 47% of businesses reporting experiences with this form of fraud, according to a Visa survey. 

Other prevalent fraud types include real-time payment fraud (45%), phishing, pharming, and whaling (42%), and first-party misuse (39%). Less common but still significant threats include card testing (33%), identity theft (32%), and coupon or discount abuse (32%).

Fraud Type	Percentage (%)
Refund/policy abuse	47%
Real-time payment fraud	45%
Phishing/pharming/whaling	42%
First-party misuse	39%
Card testing	33%
Identify theft	32%
Coupon/discount abuse	32%
Loyalty fraud	28%
Account takeover fraud	26%
Affiliate fraud	23%
Re-shipping	21%
Triangulation schemes	17%
Botnets	17%
Money laundering	14%

Mobile Commerce Accounts for Over 70% of eCommerce Transactions

Mobile commerce now represents over 70% of all e-commerce transactions, making it the dominant channel for online shopping. With this rapid shift toward mobile platforms, fraud networks are increasingly targeting smartphones and tablets, exploiting vulnerabilities in mobile apps, payment systems, and digital wallets.

35% of eCommerce Fraud Targets E-Wallets and Digital Payments

E-wallets and digital payment methods are targeted in 35% of e-commerce fraud attempts, underlining the importance of secure payment integrations. Merchants must adopt strong authentication measures and actively monitor transactions to safeguard customer funds and minimize fraud-related losses.

Data Breaches and Phishing Drive 80% of Fraud Incidents

Nearly 80% of fraud cases involve some form of identity theft, occurring through methods such as data breaches or phishing attacks. This high prevalence underscores the critical importance of robust identity verification and authentication processes for merchants, as securing customer identities is essential to preventing fraud and reducing financial and reputational losses in e-commerce.

Fake Online Stores Account for Nearly 20% of Fraudulent Transactions

Over 54% of online shoppers have been targeted by fake online stores, which are responsible for nearly 20% of fraudulent online transactions. This demonstrates the significant threat posed by counterfeit websites and highlights the importance of robust verification, secure payment practices, and consumer awareness to combat e-commerce fraud.

SMEs 50% More Likely to Experience E-Commerce Fraud Than Larger Companies

Small and medium-sized enterprises (SMEs) face a disproportionately high risk of e-commerce fraud, being 50% more likely to experience fraudulent activity compared to larger companies. This heightened vulnerability is often due to limited resources for advanced fraud detection, fewer cybersecurity measures, and smaller operational teams, making SMEs prime targets for cybercriminals and emphasizing the need for tailored fraud prevention strategies.

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Holiday Seasons Drive 65% of Annual E-Commerce Fraud Cases

E-commerce fraud activity reaches its highest levels during holiday seasons, accounting for nearly 65% of all annual fraud cases. This surge is driven by increased online shopping, higher transaction volumes, and heightened opportunities for fraudsters to exploit seasonal promotions, emphasizing the need for merchants to strengthen fraud prevention measures during peak shopping periods.

Nearly Half of Online Fraud Stems from E-Commerce Data Breaches

Data breaches in e-commerce are responsible for around 46% of all online fraud cases, making them one of the primary drivers of fraudulent activity in the sector. This underscores the vital need for strong cybersecurity practices, such as secure payment systems, data encryption, and ongoing monitoring, to safeguard customer information and minimize fraud risk.

eCommerce Fraud Detection Statistics

Global Fraud Detection Market to Double from $32B in 2025 to $65.7B by 2030

The global fraud detection and prevention market is set for substantial growth, projected to rise from USD 32.00 billion in 2025 to USD 65.68 billion by 2030, representing a compound annual growth rate (CAGR) of 15.5%.

Asia Pacific Leads Fraud Detection Market Growth Amid Rapid Digital Adoption

The Asia Pacific region is expected to experience the fastest growth in the fraud detection and prevention market during the forecast period. This surge is driven by rapid digital adoption, a growing online population, and the expansion of mobile-first economies. 

Countries like India, China, Indonesia, and Vietnam are seeing significant increases in online banking, e-wallets, e-commerce, and instant payment systems, which heighten their exposure to fraud. According to Sumsub’s 2024 Identity Fraud Report, identity fraud in the region jumped by 121%, with deepfake-related incidents also rising sharply, particularly in Singapore and Hong Kong. 

SMEs to Lead Growth in Fraud Detection Market During Forecast Period

The Small and Medium Enterprises (SMEs) segment is projected to experience the highest growth rate in the fraud detection and prevention market during the forecast period. This trend is driven by increased digital adoption and greater exposure to cyber threats among small businesses. As SMEs increasingly rely on online banking, e-commerce, and cloud applications, they face heightened risks of identity theft, phishing, and payment fraud, often with limited defenses. 

According to the Association of Certified Fraud Examiners in 2024, small businesses lose an average of over USD 141,000 per fraud case. 

Consumer Behavior and Insights on eCommerce Fraud

60% of Consumers Abandon Purchases Over Security Concerns

Security concerns significantly impact online shopping behavior, with 60% of consumers reporting that they have abandoned a purchase due to worries about transaction safety. This underscores the importance for merchants to implement robust security measures, such as secure payment gateways, encryption, and fraud prevention tools, as well as to clearly communicate these safeguards to customers to maintain trust and reduce lost sales.

Data Security Concerns Affect 43% of Online Shoppers

Data security remains a major concern for online consumers, with 43% of shoppers expressing worry about the safety of their personal information. This showcases the critical need for merchants to implement strong data protection measures, including encryption, secure storage, and transparent privacy policies, to build customer trust and encourage safe online transactions.

55% of Consumers Use Virtual Credit Cards to Combat Fraud

In response to growing fraud threats, 55% of consumers have started using virtual credit cards as a protective measure. This trend reflects increasing awareness of online security risks and demonstrates how shoppers are proactively adopting tools to safeguard their financial information and reduce exposure to e-commerce fraud.

52% of Fraud Victims Report Damage to Brand Reputation and Customer Trust

Fraud has a profound impact on businesses beyond financial losses, with 52% of fraud victims reporting significant damage to brand reputation and customer trust. This erosion of confidence can lead to long-term revenue declines.

78% of Online Shoppers Say Data Security Influences Their Purchases

Data security is a major concern for online consumers, with 78% of shoppers indicating that it significantly influences their purchasing decisions. This underscores the critical need for merchants to prioritize robust security measures and clearly communicate these safeguards to customers, as trust in data protection directly affects conversion rates and sales.

Wrapping Up 

E-commerce fraud is expected to increase as online shopping and digital payments become more widespread. As the e-commerce market grows each year, the risk of fraud rises alongside it. For online retailers, understanding these risks and adopting modern, cost-effective fraud prevention tools is essential for protecting profits and maintaining steady revenue. Although the chances of e-commerce fraud stoping is impossible. Merchants can use technology to verify customer identities and take measures to prevent fake returns and chargebacks, significantly reducing losses and safeguarding more of their revenue.